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Are environmental policies counterproductive?

Author

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  • Marie-Françoise Calmette

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Isabelle Pechoux

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

Environmental problems are often amplified by agglomeration of activities. We show that environmental policies may be counterproductive: by reducing polluting emissions, they reduce also the agents' disutility of pollution and increase their incentive to agglomerate. The result may be more pollution.

Suggested Citation

  • Marie-Françoise Calmette & Isabelle Pechoux, 2007. "Are environmental policies counterproductive?," Post-Print hal-04411293, HAL.
    • Handle: RePEc:hal:journl:hal-04411293
    DOI: 10.1016/j.econlet.2006.10.001
    Note: View the original document on HAL open archive server: https://hal.science/hal-04411293v1
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    References listed on IDEAS

    as
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    Cited by:

    1. Wang, Jingqi & Zhang, Wei & Zou, Gaofeng & Li, Yi, 2023. "Strengthened enforcement, weakened efficiency: The effect of environmental inspection on corporate investment," Economics Letters, Elsevier, vol. 232(C).

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